Referendum Facts

Why the proposition appears on the ballot

The City adopted a property tax rate of $0.679900 per $100 of taxable value for the 2026-27 tax year. The adopted rate exceeds the City’s voter-approval tax rate of $0.643254. Under Section 26.07(e) of the Texas Tax Code, voter approval is required before the City may impose the adopted rate. The election is therefore being held to determine whether the adopted rate may take effect.

Comparison of the two possible tax rates

If voters approve the proposition, the City’s 2026-27 tax rate will be $0.679900 per $100 of taxable value. If voters do not approve the proposition, the rate will be $0.643254. The adopted rate is approximately one cent lower than the City’s 2025-26 tax rate of $0.689746. The voter-approval rate is approximately 4.6 cents lower than the 2025-26 rate.

The effect on an individual property owner’s City tax bill depends on the property’s taxable value, exemptions and the rate that takes effect.

What is on the ballot

Voters will be asked to vote for or against the following proposition:

About the ballot language

State law requires a ballot proposition seeking voter approval of a tax increase to display the phrase "THIS IS A TAX INCREASE" in capital letters at the top of the proposition text. The requirement was added by Senate Bill 1025, 89th Legislature (2025), and applies to any election ordered on or after its effective date. It applies to this proposition because the proposition asks voters to consider an M&O rate above the City’s voter-approval tax rate.

If the proposition is not approved

Under Section 26.07(e) of the Texas Tax Code, if voters do not approve the proposition, the City’s tax rate for 2026-27 is the voter-approval tax rate of $0.643254 per $100 valuation rather than the adopted rate of $0.679900.

Potential impact of the election

The Tax Rate Election is projected to produce approximately $10.6 million more in M&O revenue than the voter-approval rate. The 2026-27 adopted budget allocates approximately $7.1 million of the additional M&O revenue associated with the adopted rate to the following positions, expenditures and programs:

Animal Services

$47,559 for three new full‐time Animal Services Technician positions
$22,733 for ongoing operating funds

Code Compliance

$139,566 for one new full-time Operations and Special Projects Administrator position

Fire

$1,128,160 for nine new full-time Firefighter positions
$594,400 for Firefighter overtime

Library

$554,500 for books, digital resources and materials

Municipal Court

$56,045 for Magistrate services
$18,773 for ongoing operating funds

Parks & Recreation

$675,821 for parks maintenance and City landscaping
$347,155 for Parks vehicle replacements
$165,970 for one new full-time Field Supervisor position plus 1 new vehicle
$90,000 for parks security
$10,500 for the Wildflower Planting Program

Police

$2,098,762 for 10 new full-time Police Officer positions plus 4 new vehicles
$756,424 for 8 new full-time 9-1-1 Dispatcher positions

Special Events

$396,855 for the following City-produced special events: Art Made Here, Asian American Heritage Festival, Juneteenth, Fall Fest & Guzzler Run, Día de los Muertos, Sensory-Friendly Christmas and 12 Music Made Here concerts

Transportation

$48,990 for ongoing operating funds
$15,527 for Crossing Guard salary market adjustments

The remaining $2.5 million of the additional M&O revenue is allocated for General Fund reserves to fund unforeseen operational expenses, emergencies and increased costs in the future.

Please note: Based on historical collection rates, the City assumes a property tax collection rate of 98% and assumes an additional percentage due to historically high valuation appeals, leading to approximately $1 million of unbudgeted potential revenue.

If voters do not approve the proposition, Section 26.07(e) of the Texas Tax Code will reduce the City’s property tax rate to $0.643254, which will result in a budget amendment adopted or directed by the City Council to provide for removal or reduction of the positions, services and programs listed above.